Progress: €847'000
The amount has been raised

Birštono vilos II, Birštonas

LEARN MORE ABOUT THE PROJECT

ABOUT THE PROJECT

Project description:

Key facts:

  • This is a IInd stage loan with a financing target of EUR 931 000;
  • The loan is secured by a primary pledge of all assets under development;
  • Investment term ends 02.11.2021. Contracts enter into force at 12pm every next Monday following the investment. From this date, the interest on the loan begins to accrue, so the total duration of the loan and the accrued interest depends on the week when the investment was made.
  • 93 investors have already invested EUR 1 569 000 in the Ist stage;
  • The total expected loan amount after the IInd stage - EUR 2 500 000;
  • 37% of apartments are already sold with advance payments of > 30%;
  • Value of flats already sold - EUR 4 520 000 (incl. VAT);
  • 100% of the loan amount transferred to the project owner has to be equal to the sum of sales receivables (excluding VAT) after the completion of the buildings;
  • Already under construction – block C has a completion rate of 70%, A and B - 40%;
  • Maximum loan-to-cost (LTC) ratio is 40.5%;
  • Time to complete block C - 4 months;
  • Developed by real estate professionals working 15 years in one team.

 

Funded project: Birštonas villas” - three-block modern apartment complex is being developed in the fastest growing Lithuanian resort, Birštonas. The town has a well-developed infrastructure (hospital, gymnasium, athletics field, tennis courts, spa centers, cycling trails, etc.) and is located only 45 kilometers from Kaunas, making it a suitable location for the first home. Birštonas has rapidly growing, non-seasonal tourist flows, so apartments are also attractive for rent. The project itself is developed in one of the best locations within Birštonas - the complex borders a pine forest (city park), the Nemunas river and its newly renovated riverside are just 100 meters away, 90 meters - “Eglė” sanatorium and 650 meters - the central square. The project includes a total of 73 apartments and 5 commercial premises – a total area of 3 943 m2 for sale. As much as 37% of the flats have already been sold with signed preliminary contracts and > 30% advances paid.

 

Construction work is currently underway in the project’s area: for block C the interior works are being carried out; for blocks A and B – the frame is already built and roof covered.

 

Currently, subsequent financing rounds are not planned; however, the developer can borrow additionally through the Röntgen platform. The maximum loan amount granted for the project may not exceed EUR 3 000 000 in total and must meet all terms and conditions of the Ist and IInd stage loans (all loan and collateral ratios are calculated and reported using the maximum loan amount of EUR 3 000 000). The additional capital will be used to complete the construction work. The loan will be repaid from the proceeds of the sale under the notarial contract of sale.

 

Annual interest rates: the interest rate depends on the investment amount:

  • 7.00%: 1 000 - 4 999 EUR;
  • 7.25% - 5 000 - 9 999 EUR;
  • 7.50% - 10 000 - 19 999 EUR;
  • 8.00% - 20 000 - 49 999 EUR;
  • 8.50% - 50 000 - 99 000 EUR;
  • 9.00% - from 100 000 EUR.

 

You can also check your expected return by using “Investment return calculator” in this page.

 

Loan safeguards:

  1. All property under development - the plot of land and the structures in it - is pledged to Röntgen investors.
  2.  The total amount paid to the developer shall not exceed the amount receivable from sales (excluding VAT) made according to the preliminary sale contracts. This means that 100% of the loan amount is always secured by receivables from sales*.

 

*The disbursed loan may be higher than the amount of receivables from notarial contracts only if the project owner provides an additional shareholder loan to finance the operations of the company (at a ratio of 30/70, shareholder / additionally disbursed loan).

 

  • The total investment in the project before January 31st, 2020 is EUR 3 650 000 + VAT
  • The total investment in the project is planned to amount to EUR 7 400 000 + VAT
  • The estimated project (total sales) value is EUR 9 400 000 + VAT.

 

Loan to Collateral Value Ratios after IInd stage of financing:

  • <33.8% LTC*
  • <22.0% LTGDV**

 

Total maximum Loan to Collateral Value Ratios:

  • <40.5% LTC*
  • <26.4% LTGDV **

 

* LTC - loan to total project-related costs ratio (loan-to-cost);

** LTGDV – loan to total project sales value at the end of the project (loan-to-gross-development-value).

The funds will be paid out only after the requirements of the contract are fulfilled –preliminary sales condition is met (see the second point under Loan safeguards; assets are already pledged to investors).

 

Interest and the nominal amount of the loan are repaid at the end of the project.

Property description

Sales: the attractiveness of the project and the demand for this type of housing is demonstrated by successful pre-sales. Although construction work on the project site began only in March 2019, the total sales amount to 26 apartments and 3 commercial premises (1 520 m2 or 39% of total area).

 

Buildings: the project consists of 3-block 4-storey residential buildings with a total of 73 apartments and 5 commercial premises (area of 3 943 m2 for sale). The size of the apartments ranges from 39 to 67 m2. In addition, the apartments have loggias (about 5 m2) which are not included in the common area.

 

Uniqueness:

  • This is the tallest residential building in the historic part of Birštonas (up to 15 meters), so the 3rd and 4th floors are exceptional. Due to the changes in height requirements (future developments are limited to maximum of 9 meters), similar height buildings in this area will not be built in the future.
  • The ceilings will reach 2.90 m. and up to 5.20 m. in the penthouse apartments; all apartments will have loggias and floor-to-ceiling windows.
  • Apartments will have the views of the pine forest and the river of Nemunas;
  • Energy class A +, SmartHome control system and all the other state-of-the-art housing solutions.

 

Level of finishing: for customer convenience, all apartments are sold with the turn-key level of finishing excluding all portable furniture. Apartments will be equipped with premium quality materials and well-known brands - natural wood flooring, Electrolux home appliances, Villeroy & Boch and Hansgrohe bathroom fixtures and more. The developer also offers an option to furnish the apartments fully (including all furniture and ready for living or renting out).

 

Description of the location

Birštonas: located only 45 km south of Kaunas (second largest Lithuanian city) and 90 km from Vilnius (capital and the largest city of Lithuania), Birštonas is one of the most modern and the fastest growing Lithuanian resort. The occupancy rate of hotels in Birštonas in 2018 outperformed that of all other Lithuanian resorts - Druskininkai, Palanga and Neringa. Nearly 150 000 tourists visited Birštonas last year. Rimvydas Širvinskas-Makalius, a well-known travel and tourism expert, described the town as "one of the favorite resorts." Thus, Birštonas is a very attractive location for a rental apartment because of the growing non-seasonal tourist flow and proximity to big cities.

 

Project location: “Birštonas villas” are being developed in the old part of Birštonas, so the center of the town can be reached on foot in a few minutes. Across the street from the project is the city park - a pine forest and 100 meters away the river of Nemunas flows. In addition, within a radius of 1 km. there is a grocery store, a school, tennis courts, a stadium, a swimming pool, several SPA hotels, restaurants, Birštonas central square and even more.

 

Nearest infrastructure:

10 m. - Central City Park;

50 m. - Mineral water evaporation tower;

90 m. - "Eglė" sanatorium;

100 m.- The Nemunas river;

450 m. - Groceries shop;

500 m. - Bus station;

650 m. - Central Town Square;

700 m. - Birštonas Gymnasium;

800 m. - Tennis courts.

 

Project website: www.birstonovilos.lt

About the developer

Project owner: the project is developed by UAB (Joint-Stock Company) “Prime Real Estate”, owned by Prime Partners holding, which portfolio also includes real estate development companies UAB “Saulės sonata”, investment company UAB “Avestis” and investment banking company UAB “Prime investment”. The project developer started the operations in the field of real estate consulting and mediation in 1993, and since 2004 has been actively engaged in real estate development in the major Lithuanian resorts. The project management team has over 70 years of experience in the real estate business and has been successfully working together for over 15 years.

Other participants of the project: Architects - Vilija and Algirdas Kaušpėdai, architects of “JP Architektūra” team. The project is managed by UAB “MKF“. The main contractor for the construction of frame and facade works is UAB “Alvora”.

Röntgen risk evaluation

Criterion From 0 to 5
DSCR 0
LTV 5
EBITDA margin 3
Change in value 2
Developer finance 5
Capital structure 3
Location 5
Project type 5
Project duration 3
Market trends 2
Developer experience 5
Business plan 5
Risk classes
A+
A
A-
B+
B
B-
C+
C
C-
D+
D
D-
Investment rating
A-

The project assessment criteria are coordinated with the Bank of Lithuania. The rating is the platform operator's subjective assessment of the project risk. Röntgen rating is of an informative nature only and cannot be considered investment advice.

Finances

Information available only for registered users

Projekto pajamos
9400000

Pardavimų iki 2020.01.31 pajamos
3740000
Likusio turto pardavimo pajamos
5660000

Projekto išlaidos
7400000

Statybų kaštai (93%)
6880000
Pardavimo sąnaudos (3%)
220000
Administravimo ir kiti kaštai (2%)
150000
Rezervas (2%)
150000

Tipinės veiklos pelnas
2000000

Finansavimo kaštai
680000

Pelnas prieš mokesčius
1320000

All prices are given without VAT

Safe investments

First-rank mortgage
Sold/rented

Investment return calculator

Investment

Annual interest:

7 %

Loan duration:

20 months

Growth:

11.66 %

Expected return:

0

Please be advised: this calculator is intended as a preliminary evaluation and is a tool of an illustrative nature only.

Information available only for registered users

Documents

  • 1.Birštono vilos II pristatymas.pdf
  • 2. Birštono vilos II presentation.pdf
  • 3.Informacinis dokumentas.pdf
  • 4.NTR išrašas Kęstučio g. 1.pdf

Project development process

  • 2018-08-16
    Gautas statybos leidimas
  • 2019-09-16
    Projekto I etapas paskelbtas Röntgen. A ir B korpusų baigtumas - 20%, C - 50%. Parduota 24% butų
  • 2019-11-02
    Surinkta visa I-ojo etapo investicijos suma (1 569 000 EUR)
  • 2019-12-13
    Turtas įkeistas investuotojams. Vystytojui išmokėta pirmoji lėšų suma
  • 2020-02-03
    Projekto II etapas paskelbtas Röntgen. A ir B korpusų baigtumas - 40%, C - 70%. Parduota 37% butų
  • 2020-02-25
    Baigti C korpuso fasado darbai

Location

Kęstučio g. 1, Birštonas